Federated Hermes (NYSE:FHI) Posts Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Federated Hermes (NYSE:FHI) announced its quarterly earnings data on Thursday. The company reported $1.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.19 by $0.19, Zacks reports. Federated Hermes had a net margin of 21.47% and a return on equity of 33.90%. The business had revenue of $502.78 million for the quarter, compared to analysts’ expectations of $488.34 million. During the same period last year, the firm posted $1.16 earnings per share. The firm’s quarterly revenue was up 18.3% compared to the same quarter last year.

Federated Hermes Trading Up 1.0%

NYSE:FHI traded up $0.59 during mid-day trading on Friday, hitting $60.06. 383,595 shares of the company’s stock were exchanged, compared to its average volume of 722,921. Federated Hermes has a fifty-two week low of $46.66 and a fifty-two week high of $61.01. The company has a current ratio of 3.28, a quick ratio of 2.73 and a debt-to-equity ratio of 0.29. The firm has a market capitalization of $4.56 billion, a P/E ratio of 11.64, a PEG ratio of 1.62 and a beta of 0.65. The company has a 50 day simple moving average of $57.65 and a 200-day simple moving average of $56.23.

Federated Hermes Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, August 7th will be given a dividend of $0.38 per share. The ex-dividend date is Friday, August 7th. This represents a $1.52 annualized dividend and a yield of 2.5%. Federated Hermes’s dividend payout ratio (DPR) is currently 29.46%.

Insider Activity at Federated Hermes

In related news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the business’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $57.34, for a total value of $513,193.00. Following the sale, the chief executive officer owned 151,276 shares of the company’s stock, valued at $8,674,165.84. The trade was a 5.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Bryan M. Burke sold 4,000 shares of the stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $54.20, for a total value of $216,800.00. Following the completion of the sale, the vice president owned 74,921 shares of the company’s stock, valued at $4,060,718.20. The trade was a 5.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of FHI. Advyzon Investment Management LLC raised its holdings in Federated Hermes by 6.0% during the 4th quarter. Advyzon Investment Management LLC now owns 4,594 shares of the company’s stock valued at $239,000 after buying an additional 259 shares during the last quarter. CIBC Private Wealth Group LLC boosted its holdings in shares of Federated Hermes by 119.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company’s stock worth $38,000 after purchasing an additional 401 shares during the period. Kestra Private Wealth Services LLC boosted its holdings in shares of Federated Hermes by 4.5% during the third quarter. Kestra Private Wealth Services LLC now owns 9,830 shares of the company’s stock worth $510,000 after purchasing an additional 424 shares during the period. Mercer Global Advisors Inc. ADV grew its position in shares of Federated Hermes by 6.1% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 7,603 shares of the company’s stock worth $395,000 after buying an additional 434 shares during the last quarter. Finally, State of Wyoming increased its stake in shares of Federated Hermes by 6.2% during the second quarter. State of Wyoming now owns 7,532 shares of the company’s stock valued at $334,000 after buying an additional 438 shares during the period. 75.94% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Wall Street Zen lowered Federated Hermes from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. JPMorgan Chase & Co. lowered their target price on Federated Hermes from $56.00 to $53.00 and set an “underweight” rating for the company in a research note on Monday, May 4th. Weiss Ratings restated a “buy (b)” rating on shares of Federated Hermes in a research note on Friday, July 17th. Royal Bank Of Canada raised their price target on shares of Federated Hermes from $54.00 to $57.00 and gave the company a “sector perform” rating in a research note on Thursday, July 2nd. Finally, TD Cowen lowered their price objective on shares of Federated Hermes from $58.00 to $54.00 and set a “hold” rating for the company in a research report on Monday, May 4th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $55.75.

Federated Hermes Company Profile

Federated Hermes, Inc is a global investment manager that provides a range of asset management solutions to institutional and individual investors. The company offers active strategies across equity, fixed income, multi-asset, liquidity, and alternative investments. Through its suite of mutual funds, separate accounts and collective investment vehicles, Federated Hermes seeks to deliver performance-driven outcomes aligned with client objectives and risk tolerances.

In addition to traditional investment management, Federated Hermes has developed specialized capabilities in sustainability and responsible investing, integrating environmental, social and governance (ESG) research into its investment process.